Is it FDIC insured?
It has to be by law.
Well no it doesn't and no it's not.
Robinhood launches 3% checking account
271–280 of 684 posts
Re: Robinhood launches 3% checking account
#272Earlier quoted context omitted.
Yes HFT buys trade flow from robin hood because they make more money executing against it but that's not actually to the detriment of the people on the robin hood app. The main way HFT firms make money is by making a market, they offer to buy and sell stocks cheaper than anyone else and get paid by people crossing the spread and sometimes exchange fees. The reason robinhood trade flow is valuable to HFT firms Isn't b…
The stock market is a zero sum game. If HFTs are making money then someone else's is losing it. The other traders who's trades are closest are the most likely losers. HFTs will tell you what a great liquidity service they provide but they are doing nothing more than using the equivalent of insider information to skim the cream off the top.
The stock market is not a zero sum game. I don't know where people get this idea that because every transaction involves two sides, the sum is therefore zero. Every transaction in the "real economy" also has two sides, and we all know that grows. The stock market grows too. There are even indexes to track how well it is growing.
Re: Robinhood launches 3% checking account
#273Re: Robinhood launches 3% checking account
#274This article has some of the worst pr-speak I've seen in an "article." It sounds like it was pasted straight from a press release.
The only thing this company is doing that tons of other online banks isn't is 3%. A lot of smaller banks are offering 2%+ so I would guess it is likely other banks will match this 3%
https://www.depositaccounts.com/
Re: Robinhood launches 3% checking account
#275Earlier quoted context omitted.
Why is a question like this being downvoted? It seemed honest and in good faith – what is it that leads to organizational ossification and stagnation. It might be different factors in different industries.
Because HN is learning some bad habits from its mother site with regards to the purpose of votes.
Can we get some more details? I don't understand.
Re: Robinhood launches 3% checking account
#276Til they lose your money I guess just like the options yesterday (actually, that really stinks for some developer somewhere and was completely horrible so wishing the engineers some good vibes over that and hopefully work out).
Re: Robinhood launches 3% checking account
#277I think folks are overthinking this. The math itself doesn't matter. Have you seen recent Robinhood commercials popping up on TV? Their whole business is to encourage folks that should not be day trading to day trade. Having your money parked there just facilitates knee-jerk-reaction and follow-the-crowd trading.
" Their whole business is to encourage folks that should not be day trading to day trade" Also using the ridiculously upside down moral convention that they are somehow 'the good guys defeating the system' i.e. 'Robin Hood'. "We wanted to do something after occupy Wall Street, you know. Something real. So, how about, get all the young people to, you know, put their money into Wall Street" is basically their 'storyboa…
It's amazing how many times I've seen people post losses in excess of $20,000 on r/wallstreetbets.
Re: Robinhood launches 3% checking account
#278How would they make money on this?
Re: Robinhood launches 3% checking account
#279Earlier quoted context omitted.
Aren't all orders eventually public anyway? I get that the liquidity that "market makers" claim to create is not really that beneficial to society, but as long as you're not trying to use robinhood to compete with the high speed traders, I don't see a problem with it.
> Aren't all orders eventually public anyway? no. most orders are not executed on the public exchanges, but by internal matching via your broker and a market maker. (also most exchanges only support trades in multiples of 100 shares.)
Exchanges handle odd lot orders nowadays. Maybe some brokers or dark pools do not, but they are not exchanges (their quote is not protected, or they show no quote).
I believe all customer trades/executions on actual securities should eventually be publicly visible, though there may be a small delay for them to "print to the tape".
Re: Robinhood launches 3% checking account
#280For folks trying to understand this, some context which may be useful: Checking accounts are loss leaders virtually everywhere, the exception being smaller community banks. Their primary revenue stream was, once upon a time, net interest income, but these days due to the extremely low interest environment and alternate sources of funding the revenue stream is more weighted towards fees (primarily NSFs, although that…
Excellent and coherent comment.